Cargill, the US-based agriculture trading giant, has doled out $200m for a stake in Ukraine’s largest agribusiness holding UkrLandFarming, in a potentially far-reaching deal that sources said would see both groups partner up in future grain exports to China and other growing markets.
The deal, for 5 per cent of UkrLandFarming, boosts Cargill’s strong trading presence in one of the world’s most promising agriculture commodity producers. It comes amid reports that China was rejecting imports of genetically modified US corn as it stepped up organic purchases from Ukraine.
The transaction puts a value of $4bn on UkrLandFarming, the world’s eighth-largest land cultivator and second-biggest egg producer through its 77 per cent ownership in London-listed Avangardco. The conglomerate was founded and built up in recent years through acquisitions by Oleg Bakhmatyuk, a Ukrainian billionaire.